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Redeeming lets you burn 1 MUSD to receive $1 in BTC (minus a 0.75% redemption fee and gas fees). The system redeems starting from the trove with the lowest collateral ratio above 110%.
If the amount of MUSD exceeds a single trove, it will continue to redeem in ascending order of collateralization ratio. Troves with collateralization ratios below 110% are eligible for liquidation, and cannot be redeemed against.

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Prerequisites

Before you start, verify:
1

Check System Status

Go to TroveManager → “Read as Proxy” → call getTCR() with current BTC price. Must show ≥ 1100000000000000000 (110%)
2

Verify MUSD Balance

Check your balance on the MUSD token contract
3

Get BTC Price

Go to PriceFeed → “Read as Proxy” → call fetchPrice()
4

Get Contract Addresses

See contract addresses at the bottom for both Mainnet and Testnet

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Redemption Methods

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Option A: Quick & Simple (Higher Gas)

Use this if you want to redeem quickly without calculating hints.
1

Go to TroveManager Contract

Open the TroveManager contract in your block explorer and click the “Write as Proxy” tab.
2

Find Function 11: redeemCollateral

You’ll see 6 input fields. Fill them as follows:
​
_amount
uint256
required
Your amount in wei (see conversion below)
​
_firstRedemptionHint
address
required
0x0000000000000000000000000000000000000000
​
_upperPartialRedemptionHint
address
required
Your wallet address
​
_lowerPartialRedemptionHint
address
required
Your wallet address
​
_partialRedemptionHintNICR
uint256
required
1100000000000000000000
​
_maxIterations
uint256
required
0

​
Converting MUSD to Wei

// Formula: Your amount × 1e18
const musdAmount = 100;
const weiAmount = musdAmount * 1e18;
// Result: 100000000000000000000

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Option B: With Hints (Lower Gas)

Use this to save on gas costs by providing optimal hints.
1

Get Redemption Hints

Go to HintHelpers → “Read as Proxy” → getRedemptionHints()Fill in:
  • _amount: Your amount in wei
  • _price: Current BTC price from PriceFeed
  • _maxIterations: 50
Copy the returned values:
  • firstRedemptionHint
  • partialRedemptionHintNICR
2

Get Position Hints

Go to SortedTroves → “Read as Proxy” → findInsertPosition()Fill in:
  • _NICR: Use the partialRedemptionHintNICR from Step 1
  • _prevId: Your wallet address
  • _nextId: Your wallet address
Copy the returned values:
  • upperHint
  • lowerHint
3

Call redeemCollateral

Go back to TroveManager → “Write as Proxy” → redeemCollateral
  • _amount: Your amount in wei
  • _firstRedemptionHint: from Step 1
  • _upperPartialRedemptionHint: upperHint from Step 2
  • _lowerPartialRedemptionHint: lowerHint from Step 2
  • _partialRedemptionHintNICR: from Step 1
  • _maxIterations: 50

​
Smart Contract Integration

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TypeScript Example

import { ethers } from 'ethers';

async function redeemMUSDWithHints(
  contracts: {
    troveManager: Contract,
    hintHelpers: Contract,
    sortedTroves: Contract,
    priceFeed: Contract
  },
  wallet: Wallet,
  musdAmount: bigint
) {
  // Get current BTC price
  const price = await contracts.priceFeed.fetchPrice();
  
  // Get redemption hints
  const { 
    firstRedemptionHint,
    partialRedemptionHintNICR 
  } = await contracts.hintHelpers.getRedemptionHints(
    musdAmount,
    price,
    50 // maxIterations
  );
  
  // Get position hints
  const { upperHint, lowerHint } = 
    await contracts.sortedTroves.findInsertPosition(
      partialRedemptionHintNICR,
      wallet.address,
      wallet.address
    );
  
  // Execute redemption
  const tx = await contracts.troveManager
    .connect(wallet)
    .redeemCollateral(
      musdAmount,
      firstRedemptionHint,
      upperHint,
      lowerHint,
      partialRedemptionHintNICR,
      50 // maxIterations
    );
  
  await tx.wait();
  return tx;
}

​
Calculation Example

Redeeming 100 MUSD:
1

Burn MUSD

You burn: 100 MUSD
2

Calculate BTC

Formula: (Your MUSD Amount ÷ BTC Price) × 0.9925 = BTC receivedExample: (100 ÷ 100000) × 0.9925 = 0.0009925 BTC
3

Receive BTC

You receive: $99.25 worth of BTC (0.75% fee goes to protocol)

​
Common Issues

​
”Cannot redeem when TCR < MCR”

System TCR is below 110%. Wait until it recovers before attempting redemptions.

​
”Unable to redeem any amount”

This can happen for several reasons:
  • No troves available with collateral ratio above 110%
  • Hints are out of date (specifically the NICR hint)
  • The redemption amount would leave the target trove with less than the minimum debt requirement of 1,800 MUSD
  • Max iterations set too low for the redemption size

​
Transaction runs out of gas

Lower _maxIterations to 10 or split into smaller redemptions.

​
Transaction reverts unexpectedly

Get fresh hints and try again. Someone may have redeemed before you.

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Received less than expected

Check the Redemption event in your transaction. Some MUSD may have been returned if the last trove would go below 1,800 MUSD minimum.

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Best Practices

  • Generate hints immediately before redeeming - They become stale if someone else redeems first
  • Use Option A for small amounts (< $10,000) - The higher gas cost is negligible
  • Use Option B for large amounts - Saves significant gas on big redemptions
  • Set higher maxIterations for larger redemptions:
    • Small (< 10 troves): 10
    • Medium (10-30 troves): 50
    • Large (30+ troves): 100

​
Contract Addresses

​
Mainnet

​
TroveManager
address
0x94AfB503dBca74aC3E4929BACEeDfCe19B93c193
​
HintHelpers
address
0xD267b3bE2514375A075fd03C3D9CBa6b95317DC3
​
SortedTroves
address
0x8C5DB4C62BF29c1C4564390d10c20a47E0b2749f
​
BorrowerOperations
address
0x44b1bac67dDA612a41a58AAf779143B181dEe031
​
PriceFeed
address
0xc5aC5A8892230E0A3e1c473881A2de7353fFcA88
​
MUSD Token
address
0xdD468A1DDc392dcdbEf6db6e34E89AA338F9F186

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Testnet

​
TroveManager
address
0xE47c80e8c23f6B4A1aE41c34837a0599D5D16bb0
​
HintHelpers
address
0x4e4cBA3779d56386ED43631b4dCD6d8EacEcBCF6
​
SortedTroves
address
0x722E4D24FD6Ff8b0AC679450F3D91294607268fA
​
BorrowerOperations
address
0xCdF7028ceAB81fA0C6971208e83fa7872994beE5
​
PriceFeed
address
0x86bCF0841622a5dAC14A313a15f96A95421b9366
​
MUSD Token
address
0x118917a40FAF1CD7a13dB0Ef56C86De7973Ac503
All addresses are proxy contracts. Always use “Read as Proxy” or “Write as Proxy” tabs.

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